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Raise Income Gap, Fix Social Security Budget?

According to Care 2, the debt ceiling and the budget funding debate continue, with talk about possible cuts to the Social Security program. Both Republicans and Democrats have expressed their wishes to reform Social Security’s entitlement program. Although the fund itself is stable enough to pay out disability benefits to Americans, it needs reform in order to remain solvent. Republicans have called for privatization and cut backs in the program, while Democrats have suggested raising the retirement age to save funds.

Another discussion about Social Security includes adjusting the cap on how much income can be taxed. The President is backing this idea, suggesting that those making millions should pay more in taxes. The nation’s millionaires and billionaires enjoy tax cuts, while the rest continue to pay in based on their net income.

Take for example the nation’s billionaire, Warren Bufffet. The billionaire investor spoke to a crowd of college students in Virginia about Social Security, saying that he stops paying Social Security taxes on a little bit over $100,000 and then the next $50 billion a year is not taxed a dime in Social Security taxes.

Proponents of the Social Security program worry that no change will result in the program running out of funds by 2037. However, that may not mean the end of the program and Social Security disability benefits, but a reduction in the amount an individual would receive. Raising the income cap is an idea supported by many as a way to eliminate the deficit forecast for the Social Security fund.